KUALA LUMPUR: The Federal government wants to stand by the original master agreement for the Selangor water industry consolidation which lapsed yesterday.

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said, "I have not given up the opportunity to conclude and settle the water issue."

"I am just worried that maybe it is not the technicality that is governing their (the state government) decision but the politics of it," he said to reporters at the parliament lobby when asked to respond to Selangor Menteri Besar Mohamed Azmin's decision to let the master agreement lapsed through no further extension.

Ongkili also disputed Mohamed Azmin's claims that the federal government did not intend to honour the master water agreement that was signed on Sept 12, last year.

"....they (Selangor government) did not read properly because the definition of assets is land which includes actual land," he said.

He said the Federal government did not contravene the terms of the master agreement but it was Selangor that failed to adhere to several conditions precedent to the master water agreement.

Ongkili also noted that the land where the water assets are on can be returned back to the state after the 45-year lease is up.

To recap, the Selangor state government had decided not to give the Federal government a third extension to the master water agreement that lapsed yesterday.

Selangor Menteri Besar Mohamed Azmin Ali had voiced his disappointment over the Federal government's decision not to honour the master agreement that was signed by his predecessor, Tan Sri Abdul Khalid Ibrahim, claiming that the ownership of the land the water assets are on was never in the master water agreement.

Ongkili also stressed that "the ball is in their court and not in our court" because it is up to the state government to agree for another extension so that the water consolidation could be completed as soon as possible.

The master water agreement was then signed between the Federal government, the Selangor state government, Pengurusan Aset Air Bhd (PAAB) and Pengurusan Air Selangor Sdn Bhd.

Under the master agreement, a new entity Air Selangor Sdn Bhd, will take over the operations and maintenance of the state's water treatment plants and water supply services which are currently managed by four concessionaires.

They are Syarikat Pengeluar Air Sungai Selangor Sdn Bhd, Puncak Niaga (M) Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd and Konsortium Abass Sdn Bhd.

The master agreement was to have been finalised on Jan 12 this year, but was postponed to Feb 9 and again to March 9 following the transfer of water assets between the state and Federal governments.